New Saral withdrawn - really
In the Indian Taxs cenario, it is not the Government alone which can cause confusion. The press can do more than that. In the run for being fast and first, details and truth are sacrificed. If you get a piece of news, run and publish it in your channel or paper, don't wait for verifying the facts - this seems to be the guiding principle for most of the journalists today. A highly respected and popular newspaper sometime back carried a story that a particular notification is available only in taxindiaonline and it is available only to paid subscribers. The reporter did not have the patience to call us or verify whether it was freely available in our "What's New" section. We had top take up the matter with the Editor In Chief of that newspaper to get the misreporting corrected.
Today all the newspapers and yesterday most of the TV channels went to town with the news that the controversial new Saral has been withdrawn. We are perhaps the only one who did not carry this news. We were flooded with calls and we found out there was no such withdrawal. The form was introduced by a notification and we tried to explain that there had to be a notification to withdraw it and we were sure there was no such notification issued.
This is how ndtv profit.com reported it,
Govt drops new form for filing IT returns - NDTV Correspondent - Thursday, June 8, 2006 (New Delhi):
Under severe attack from various quarters, including the Congress party, the government said the new form introduced for filing Income Tax returns would be dropped from next year.
This has its genesis in the PTI report, which strangely looks identical,
Govt drops new form for filing I.T returns - New Delhi, June 8 (PTI) - Under severe attack from various quarters, including the Congress party, the government today said the new form introduced for filing Income Tax returns would be dropped from next year. "The new four-page form which replaces the one-page "Naya Saral (simple) form" is meant for only this year and will only be optional for filing returns, Revenue Secretary K M Chandrasekhar told reporters.
And every other channel and paper picked up the story and reported:-
Govt to modify new IT return form - Times of India
New IT return form may be modified next year - Zee News
Govt scraps new IT return form - Daily News & Analysis
New IT return form to be dropped from next year - Hindustan Times
Govt scraps new IT return form - Rediff
Govt drops new form for filing IT returns - Hindu
But what did the Revenue Secretary Chandrasekhar really say? He said the form is only for this year and optional. He never said that it is withdrawn. In fact this has been the government's stand right from the beginning. The press note issued by the CBDT clearly said,
"With a view to make return filing easier, the Central Government has notified on 1st June, 2006 a new income-tax return form " Form 2F" for Assessment Year 2006-07." And it was made optional.
Even the amended rule says, the assessee shall also have the option of filing the return in Form No. 2F
So the Revenue Secretary was simply clarifying the position which was clarified on the day the notification was issued.
4% Special Additional duty and confusion relating thereto.
This 4% additional duty had created quite a lot of confusion and there were varied opinions from experts. To refresh, you can have a look at some of our stories.
1. ADMISSIBILITY OF CENVAT OF CVD IF PAYMENT ADJUSTED THROUGH DEPB? - By S K Bhardwaj
2. Drawback when inputs are imported availing DEPB - yet another faux pas from the Board
3. DEPB Vs Cenvat Credit - Live and kicking! : By R Raghavendra Rao
4. Additional CVD on DEPB imports! : By Swamy Associates
5. Additional CVD of 4% under DEPB : Exemption and debit to DEPB scrips : By J M Kishore
Finally Board has addressed the issues and issued certain clarifications. Board's logic and reasons may be left out to avoid any further confusion and these are the clarifications from the Board.
The special CVD of 4% is not leviable in case of imports under advance licence, EOU and SEZ schemes.
In the case of imports under EPCG Scheme it may be noted that notification No.97/2004-Customs dated 17.9.2004 governing imports under the said scheme itself provides for exemption from additional duty whether the levy is under section 3(1) or 3(5) of the Customs Tariff Act, 1975. The special additional duty of 4% is, therefore, not leviable on imports under EPCG Scheme.
DEPB, Target Plus, Served from India, DFCE and Vishesh Krishi and Gram Udyog Yojana schemes, when goods are imported under any of these schemes, the exemption from duties in terms of the respective customs notifications shall only be available if the element of 4% special CVD is debited in the duty scrips / entitlement certificates
In the case of import of goods under DFRC Scheme, the element of 4% CVD shall be payable because, the notification grants exemption from basic duty only.
the 4% CVD duty debited in DEPB, DFCE, Target Plus etc. certificates may be allowed to be taken back as drawback (brand rate)
It may be mentioned here that under the Foreign Trade Policy, additional customs duty (CVD) debited in DEPB scrips/certificates issued under reward schemes is allowed to be taken as cenvat / drawback
CBEC Circular No. 18/2006-Cus dated 5th June, 2006.